Reviewing Blackhawk Network Holdings (HAWK) & NetSpend Holdings (NTSP)
Blackhawk Network Holdings (NASDAQ: HAWK) and NetSpend Holdings (NASDAQ:NTSP) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
This is a breakdown of recent ratings for Blackhawk Network Holdings and NetSpend Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Blackhawk Network Holdings||0||5||8||0||2.62|
Blackhawk Network Holdings currently has a consensus price target of $47.33, indicating a potential upside of 29.50%.
Earnings & Valuation
This table compares Blackhawk Network Holdings and NetSpend Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Blackhawk Network Holdings||$1.90 billion||1.09||$4.65 million||($0.06)||-609.07|
Blackhawk Network Holdings has higher revenue and earnings than NetSpend Holdings. Blackhawk Network Holdings is trading at a lower price-to-earnings ratio than NetSpend Holdings, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
97.2% of Blackhawk Network Holdings shares are held by institutional investors. 3.8% of Blackhawk Network Holdings shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Blackhawk Network Holdings and NetSpend Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Blackhawk Network Holdings||-0.14%||4.12%||1.12%|
Blackhawk Network Holdings beats NetSpend Holdings on 6 of the 8 factors compared between the two stocks.
About Blackhawk Network Holdings
Blackhawk Network Holdings, Inc. is a prepaid payment network. The Company operates through three segments: U.S. Retail, International, and Incentives & Rewards. The U.S. Retail segment is engaged in the sale of prepaid products to consumers at its retail distribution partners and online and the sale of telecom handsets to retail distribution partners for resale to consumers. Its Incentives & Rewards segment is engaged in the sale of prepaid products, software and services to its business clients. It distributes closed loop gift cards in categories, including digital media and e-commerce, dining, electronics, entertainment, fashion and travel. It distributes a range of prepaid wireless or cellular cards. It also provides reloads for reloadable prepaid products, including prepaid telecom accounts and general-purpose reloadable cards. Its incentives businesses provide software, consulting services, program management, reward processing and reward fulfillment to its business clients.
About NetSpend Holdings
NetSpend Holdings, Inc. (NetSpend) is a provider of general-purpose reloadable prepaid debit cards (GPR) cards, and related alternative financial services to underbanked consumers in the United States. NetSpend’s GPR cards are tied to the Federal Deposit Insurance Corporation (FDIC)-insured depository accounts and can be used to make purchase transactions at any merchant that participates in the MasterCard, Visa or PULSE networks and to withdraw funds at participating automated teller machines (ATMs). The Company also offers to its cardholders direct deposit, interest-bearing savings accounts, bill pay and card-to-card transfer functionality, personal financial management tools and online and mobile phone card account access. As of December 31, 2010, the Company marketed its GPR cards through approximately 750 retail distributors at approximately 39,000 locations. As of August 21, 2010, the Company ceased marketing gift cards.
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